How to Report Opportunity Zone Deferral
If you’ve been paying attention to our blogs, you know that we’ve been writing a great deal about the Qualified Opportunity Zone (QOZ) program. This program allows you to take the capital gains earned from the sale of assets, and redirect those gains toward a Qualified Opportunity Fund (QOF). The result, for you, is a deferral of taxes on those profits.
What is Entitlement Risk?
Entitlement risk is often associated with new development, but it also occurs with property conversions. It can present a number of surprises and can be a very time-consuming process. When entitlement risks are involved, there’s no guarantee that a project will even be successful. In this article, we’ll go over what entitlement risk is and the challenges that it presents to real estate investors.
What is the Capital Gains Tax on Rental Property, and When Do You Pay It?
Along with the potential benefits of rental property ownership, is one downside. This involves annual taxes owed to the IRS, and encompasses both the rental income you might earn during your time of ownership, and the profit resulting from the sale of that property -- also known as capital gains.
Who Uses Portfolio Management?
Accredited investors and other high-net-worth individuals often use professional money managers to help them build diversified portfolios that not only meet their tolerance for risk but also can withstand cyclical downturns in the economy.
What Types of Loans Can Be Used for Investment Properties?
Investing in real estate has the potential for long-term earnings, and while some people have the capital to pay cash for a property, many need to get a loan to purchase an investment property.
How to Calculate Property Value Based On Rental Income
Knowing the value of a property you are considering for purchase is critical. Accurate information helps you understand how much to pay for an asset that you want, enables you to avoid overpaying, and assists you in identifying an opportunity. There are several methods of valuing property:
Are Repairs on Rental Property Tax Deductible?
Owning investment property like rental units bestows varied benefits on the owner, including tax advantages. Landlords can deduct mortgage interest, operating costs, property taxes, and even repairs. The investment in the building is deductible over time as depreciation and repairs that qualify as improvements are depreciated rather than deducted.
What is a Good Cap Rate for Rental Property?
When investors are considering properties, there are various methods of evaluating the potential of the assets, and you may be wondering about the capitalization rate or cap rate, compared to other available metrics, such as ROI (return on investment). Cap rate can be helpful in comparing different property types. Since the measurement is seeking a value based on potential income production, it can assign comparable worth to disparate types (for example, juxtaposing an apartment building with a storage facility and a retail complex).
Passive Income Portfolio Management: 4 Things to Know
For long-term investments, Americans tend to prefer real estate. According to a Gallup survey, 34% of Americans said that real estate was the best long-term investment — beating stocks, bonds, mutual funds, gold, savings accounts, and CDs.
How to Buy Investment Property
Purchasing an investment property (especially if it’s your first) is a big step. By investment property, we mean purchasing real estate property with the hope that it will generate a return through rental income and appreciation. But before you buy investment property, you need to know some of the basics.
